Strix Group Plc · LSE:KETL
Strix — H1 2019 Earnings Presentation
24 slides from Strix's earnings presentation, September 2019
Slide 1: Strix Group Plc Interim Results Period Ended 30 June 2019
Strix Group Plc Safer by design INVESTOR PRESENTATION INTERIM RESULTS PERIOD ENDED 30 JUNE 2019 This document is the property of Strix Ltd and the information contained is CONFIDENTIAL. The drawings and information may not be reproduced or used without the prior written consent of Strix Ltd. The des
Slide 2: Operational and Strategic Highlights
Operational and Strategic Highlights Mark Bartlett, CEO
Slide 3: 2019 H1 Operational and Strategic Highlights
2019 H1 Operational and Strategic Highlights Kettle Controls Appliances Water Category Operations • Market Share • China Expansion • Halosource Acquisition • New Factory Market share maintained within Expansion in China with Acquisition of specified assets Investment agreement all segments despite m
Slide 4: Financial Highlights & New Factory Update
Financial Highlights & New Factory Update Raudres Wong, CFO
Slide 5: Financial Highlights
Financial Highlights 2 Note: 1 Adjusted results exclude exceptional items which includes share based payment costs, is a non- GAAP metric used by management and is not an IFRS disclosure. 2 Net debt H1 2019 excludes IFRS16 related lease creditors (£4.4m).
Slide 6: Profit and Loss Summary
Profit and Loss Summary £m H1 2019 H1 2018 % Change2 Revenue 43.9 42.9 +2.5% Gross profit 16.7 16.3 +2.5% Other operating costs - before exceptional (4.8) (4.5) +7.1% Other operating costs - after exceptional (8.8)4 (6.9) +27.8% Adjusted EBITDA1 14.9 14.8 +0.7% Adjusted PBT1 11.5 11.0 +4.6% Adjusted
Slide 7: Cash Flow
Cash Flow Commentary: £m H1 2019 H1 2018 Receivables: £4.1m outflow (H1 2018: £0.8m outflow) due to Adjusted EBITDA1 14.9 14.8 increase in trade debtors £3.8m due to high June sales and Inventories (0.3) (1.0) increase in prepayments to suppliers to secure material prices. Trade and other receivab
Slide 8: Net Debt
Net Debt 1 Net debt at 30 June 2019 RCF balance at 30 June 2019 £33.4m £42.0m £27.5m at 31 December 2018 £41.0m at 31 December 2018 Revolving credit facility Facility headroom at 30 June 2019 £51.0m £9.0m with facility termination date of July 2022 available to draw down if required ND/EBITDA ratio
Slide 9: New Factory
New Factory Investment Agreement signed between Strix & PRC Government in Q1 2019 for a factory more than 2 times the size of our current premises, with 50 years right-of-use granted for the land. Will provide efficiency improvements, additional automation capability and an opportunity to in-source
Slide 10: i PEPE a
i PEPE a Me iii, a
Slide 11: Operational and Strategic Update
Operational and Strategic Update Mark Bartlett, CEO
Slide 12: Kettle Control Business
Kettle Control Business Enhancing our kettle control offering remains a key focus for Strix with the global kettle market currently valued at retail at c. £3 B, and projected to expand by c. 15% over the next three years. Strix Control Share Targets by Market Regulated: 61% Strix Addressable 50% Chi
Slide 13: Hot Water on Demand (HWoD)
Hot Water on Demand (HWoD) The HWoD category is a natural extension to the Strix core business offering, and is valued at retail at over £2.4 B globally. The market is growing out of consumers’ increasing need for convenience, speed, and energy efficiency. 2019 Highlights Successful IFH “true Hot Ta
Slide 14: Baby Care
Baby Care The Global Baby Care Category is valued at retail at over £150 Billion. Strix plans to expand from a UK to a Global footprint in this resilient category, focusing on solutions which offer enhanced convenience and safety. Ta r g e t e d E x p a n s i o n 2019 Highlights China TT Perfect Pre
Slide 15: Water Category: Acquisition Update
Water Category: Acquisition Update Aqua Optima, astrea (new), and Halopure (new) businesses and technologies have now been successfully integrated into a consolidated water category. The new US operation is fast becoming a Launchpad for an expanded branded product portfolio into global markets. Inno
Slide 16: Water Category
Water Category The Global Water Filtration Category is valued at retail at over £8 Billion. With historic focus limited to the UK market, Strix plans to leverage existing technologies and new acquisitions to drive aggressive growth in focus geographies. By the end of 2021 our aim is to launch 16 new
Slide 17: Significant NPD launches
Significant NPD launches Strong, patented core and disruptive technologies that can be leveraged through the extensive relationships with both Brands and OEM’s focused on delivering consumer & environmental benefits Mr. Coffee Machine IFH China: Global branded LUMI Launch Water Bottle Partnership La
Slide 18: Outlook 2019
Outlook 2019 We remain committed to increase the full year dividend by 10% to 7.7p per share and remain confident of achieving the Group’s business objectives for the full year. Kettle Controls Appliances Water Category Operations • Market Share • Strategic • Halopure • New Factory Maintain share wi
Slide 19: Strix Investment Proposition
Strix Investment Proposition Applicable Key Attributes to Strix? Evidence 1 High proportion of recurring revenue Yes Kettles replaced on average every 3.5 years securing c. 90% revenue annually. Global market leader with >60% of regulated and c. 46% of China Domestic Market. 2 Industry leading share
Slide 20: Disclaimer
Disclaimer This presentation, which comprises the presentation slides (the “Slides”) and any information communicated during any delivery of the presentation whether orally or in writing, including talks given by the presenters, any question and answer session and any documents or materials distribu
Slide 21: Appendix
APPENDIX "Safer by design
Slide 22: The Journey of Strix
The Journey of Strix Key history and development aqua Optima
Slide 23: Balance Sheet
Property, plant and equipment has increased by Balance Sheet £7.2m. £4.2m relates to ROU assets (leases), £1.7m relates to the land use right, and the remaining £1.3m relates primarily to CEUC to Reported Reported support continued investment and automation. H1 2019 2018 £m £m Intangible assets
Slide 24: IFRS 16 Analysis
IFRS 16 Analysis Reported Movement Movement Pre IFRS 16 IFRS 16 (pre IFRS 16) (pre vs post IFRS 16) H1 2019 H1 2019 H1 2018 £k £k £k % £k Revenue 43,930 43,930 42,868 - Cost of sales (27,253) (27,265) (26,600) 12 Gross Profit 16,677 16,665 16,268 2.4% 12 Distribution costs (2,565) (2,568) (2,775) 3